JJC is an ETN that holds only a single commodity, the Copper High Grade futures contract.

Trading was as expected last week and continued the correction. Price action has been bearish confirmed for the last four weeks, a very strong sign of the exceptionally bearish sentiment. Expect lower trading this coming week as price action continues to be a reliable and successful indicator. JJC has retraced back to July price levels, giving back all profits to anyone who remained long. Our trading strategy prioritizes risk minimization then attempts to lock-in a high percentage of profits. While long only investors are currently flat since July, our trading strategies have capitalized on the JJC rally and exited before the correction.

Fully retracing back to midsummer lows, USO has nearly completed its correction cycle. We believe prices will continue to find strong support above 30 and shouldn’t trade much lower. Like many other markets, last week’s restricted trading range formed a VRCB. Although this can be attributed to reduced volume on only three trading days, VRCBs naturally form at the top of rallies and the bottom of corrections. This could be a sign of intrinsic support coming into the market. We strongly believe the current correction will fail to violate the previous bottom at 29.02.

After attempting to find support for our long trade, UNG stopped out the remaining 85% of our position at 21.52, profiting $263,850 or 0.53%. The position was generated off a very profitable trade strategy to buy the first correction following a bullish trend reversal. Last week formed a top by trading 21.73 and further confirmed it by closing below this price. UNG, officially in a correction, is expected to trade down to 18.88 but certainly not below 17.69. The bullish I.T. trend has already made its yearly trend reversal and we do not expect another one this year. If price action obtains this week, trading will continue lower, closing below 20.81.

About the Author

Parrish Hicks Capital Research is a trading and technical analysis firm that specializes in Energy and Metal commodity futures. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years’ experience in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October. They also called the all-time high day for Gold on September 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. Their trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Their expertise is focused on 16 commodities plus the comparable ETF markets. You can reach them at Jim@ParrishHicks.com and Kris@ParrishHicks.com or at www.ParrishHicks.com.

IMPORTANT DISCLOSURE

Transactions in ETF (Exchange Traded Funds) carry a high degree of risk. This material is not intended as an offer or solicitation for the purchase of any financial instrument. The data and these comments are provided for information purposes only and may or may not be intended to be used for specific trading strategies. ETF trading is risky and Parrish Hicks Capital Research assumes no liability for the use of any information contained herein. Any examples are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. ETF strategies mentioned herein may not be suitable for all investors. The opinions and recommendations herein do not take into account individual client circumstances, objectives or needs and are not intended as recommendations of a particular ETF or ETF strategies to a particular client. The recipient of this report must make his own independent decisions regarding any ETF instrument to a particular client.